The paper analyzes the asset pricing implications of performance fees linking the compensation of fund managers to the return of the managed portfolio relative to that of a benchmark portfolio. Symmetric (“fulcrum”) performance fees distort the allocation of managed portfolios in a way that induces a significant positive effect on the equilibrium prices of stocks included in the benchmark portf...

Along with the wide use of the Internet, online advertising expense is soaring in the last decade. There are many pricing strategies for online advertisement, including fixed fees, click-through rates, and performance-based commission rates (i.e., referral fees). The trend towards profitability, along with better tracking tools, has resulted in less interest in fixed rates and more interest in ...

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The multiple payments settlement systems available in the United States differ on several dimensions. The Fedwire Funds Service, a utility that operates a U.S. large-value paymentssettlement service, offers the fastest speed of settlement. Recognizing that payments differ in the urgency with which they need to be settled, Fedwire offers banks a decreasing block-price schedule. This approach all...

For many goods and services, such as cellular-phone service and debit-card transactions, the marginal price of the next unit of service depends on past usage. As a result, consumers who are inattentive to their past usage may be aware of contract terms and yet remain uncertain about the marginal price of the next unit. I develop a model of inattentive consumption, derive equilibrium pricing whe...

This study examines whether tax haven use by Australian financial corporations is associated with the pricing of audit and non-audit services. It also analyzes existence corporations’ suspicious matters reports (SMRs) whistle blower hotline facilities moderate association between We find a positive Our results are economically significant. For example, fees for around 23 per cent higher compare...

From the perspective of institutional change in IPO regulation, this paper discusses relationship between pricing regulation and audit fees China. This finds that companies are higher stage comparison to marketization. We also find auditors charge for private than state-owned during period. Furthermore, regions with tightened legislation,

This report evaluates the traffic safety impacts of various transport pricing reforms including fuel tax increases, efficient road and parking pricing, distance-based insurance and registration fees, and public transit fare reductions. This analysis indicates that such reforms can significantly reduce traffic risk, in addition to providing other important economic, social and environmental bene...

Services like FedEx charge up-front fees but reimburse customers for delays. However, lead time pricing studies ignore such delay refunds. This paper contributes to filling this gap. It studies revenue-maximizing tariffs that depend on realized lead times for a provider serving multiple time-sensitive customer types. We relax two key assumptions in the standard model since Naor (1969). First, c...